As expected, Intelsat SA's planned merger deal with SoftBank Group Corp.-backed WorldVu Satellites Ltd. collapsed after Intelsat failed to get enough of its bondholders to back the deal.
Intelsat in February had agreed to merge with OneWeb in a complex share-for-share transaction. SoftBank had also entered into a definitive share purchase agreement with Intelsat to invest $1.7 billion in newly issued common and preferred shares of the combined company. SoftBank also terminated the share purchase agreement with Intelsat, according to a June 2 Form 6-K filing.
"There were many stakeholders' interests that needed to be satisfied in this complex transaction," Intelsat CEO Stephen Spengler said in a June 1 statement. "We are disappointed that our bondholders were unwilling to accept the terms of the exchange offers presented over the course of this process."